Bitcoin miners earn under 0.7% of revenue from fees in new 10-year low
Bitcoin miners showed a “concerning” trend of pivoting to AI amid a profit squeeze as transaction-fee income barely bounced from 10-year lows of 0.52% of revenue.
Bitcoin miners are earning less than 0.7% of their revenue from transaction fees, marking a new 10-year low, according to data from onchain analytics platform Glassnode. Transaction fees now make up just 0.69% of miner revenue, after falling to 0.52% in April. Major players are shifting their focus to AI as they face ongoing pressure from declining Bitcoin prices and rising electricity costs.
Glassnode co-founder Rafael Schultze-Kraft noted that fees had not exceeded 1% of miner revenue for almost a year. Bitcoin's value has dropped nearly 50% since its October 2025 peak, further squeezing miners' profit margins. The average cost of producing one Bitcoin is now estimated at $78,254, nearly 23% higher than the current spot price.
Bitcoin's network hash rate, a measure of the computing power securing the network, has declined by 33% since its October 2025 peak. Independent analyst William Clemente acknowledged the downturn, attributing it to the shift toward AI computing and the prolonged underperformance of Bitcoin compared to AI-related assets.
Written by urgent.news from Cointelegraph's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
